What Should You Know?
I’m a former medical marijuana dispensary owner. I sold the dispensary for retirement. Now, I primarily do consulting as part of my retirement.
There is more than one way to skin a cat in the marijuana industry.
The paper trail…
When operating any type of marijuana business the first thing you’ll have to consider is that you won’t be able to do business with a bank. This is one way dispensaries keep track of accounting and business transactions for the reasons of tax preparation.
For example, a dispensary can have many employees: security guard, bud tender, trimmers, etc. When a dispensary has to pay their employees they can’t write a check from a business bank account. The dispensary uses a checkbook to pay all the employees and then voids all the checks before they are delivered to the employees. The employees are then paid in cash.
The paper check / paper trail is only a device to give both the employee and the employer written documentation of what was paid for that year. Cash transactions are the way that you need to think in the marijuana industry.
There are other ways to make fund transfers and create paper trails that are all completely legal.
Investors and partnerships
If investing or partnering with entrepreneurs, verbal agreements should be mutual. Forming a limited liability corporation can insure that all parties agree to verbiage in the form of writing.
In every business your brain does most of the work.
My business advice is to never do business with family members, and never do business if your stomach tells you not to. Your best bet is to never partner in any business venture. Two or more heads never think along the same lines. What’s more, in just about every case I know of one partner tends to feel that he (or she) has done more work than the other, or is more committed to the success of the operation than the other. This almost always leads to tension and distrust.
It is always better to steer the ship as the captain.
In 2010, I sold one of my Denver houses to a man in Florida. He purchased the house so his kids could move to Colorado and get jobs in the marijuana industry. This man had foresight and was able to see ahead a few years before others.
I sell real estate from my own portfolio. In Colorado you don’t need a Realtor getting a big piece of your pie. One way I find real estate investors is by networking.
For more information and general business guidelines, get my book…
A medical marijuana business plan
I have been a resident of Colorado for twenty-six years.
My book, titled “Colorado Marijuana Real Estate,” is a how to guide for entrepreneurs and the blue-collar guy. This book explains the Colorado evolution of legal marijuana from 2001 to 2014.
What’s more, this book provides you with a blueprint for starting a medical marijuana business plan.